Question 57 (6 points) Imporia Container Ltd. is suffering from declining sales of its main product, non- biodegradable plastic cartons. The president, Benny Benson, instructs you, his controller, to lengthen asset lives to reduce their depreciation expense. A processing line of automated plastic extruding equipment, purchased for $3 million in January Year 1, was originally estimated to have a useful life of five years and a residual value of $200,000. Depreciation has been recorded for two years on that basis. Benny wants the estimated useful life changed to a total of seven years. You are hesitant to make the change, believing it inappropriate to "manage earnings in this way. Benny says, "Hey, the useful life is only an estimate, and I've heard that our competition uses a seven-year life on their production equipment." Required: 1. Who are the stakeholders in this situation? 2. Will Benny Benson's proposed change in the useful life increase or decrease net earnings in Year 3? Why? 3. Do you think the proposed change in useful life is unethical or simply a good business practice by an astute president? Why